Preface to “A New Theory of Risk and Rating” by Giulio Sapelli. The Elegance of Frugality and Risk. From a theoretical standpoint, risk is confronted in the very same way in which human interests and activities deploy and manifest themselves at given levels of self-organization. In fact, there cannot exist an objectivistic and deterministic theory…
Blog written in July, 2103. There is plenty of discussion nowadays as to whether to bailout or not to bailout. This short blog does not have the objective of adding more in support of one option over the other. The goal is to show the mix of today’s economy in terms of Keynsian and Friedmanian…
Recent research confirms that high portfolio complexity impacts negatively mid and long-term expected returns. This is because high complexity has been shown to be a formidable source of fragility, hence vulnerability. In a turbulent economy highly vulnerable portfolios and financial products are more exposed, therefore more risky. Assetdyne has demonstrated that a portfolio design strategy…
